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The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to 拢5 million.

The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

The scheme is open until 31 March 2021.

Eligibility

You can apply for a loan if your business:

• is based in the UK
• has an annual turnover of up to 拢45 million

You need to show that your business:

• would be viable were it not for the pandemic
• has been adversely impacted by the coronavirus

If you want to borrow 拢30,000 or more, you also need to confirm that your business wasn鈥檛 classed as a on 31 December 2019.

Who cannot apply

Businesses from any sector can apply, except:

• banks, insurers and reinsurers (but not insurance brokers)
• public-sector bodies
• state-funded primary and secondary schools

How long the loan is for

The maximum length of the facility depends on the type of finance you apply for and will be:

• up to 3 years for overdrafts and invoice finance facilities
• up to 6 years, for loans and asset finance facilities

How to apply

There are 117 lenders participating in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender鈥檚 website.

You鈥檒l need to tell the lender:

• the amount you鈥檇 like to borrow
• what the money is for
• how long you鈥檇 like to pay it back

Supporting documents

You鈥檒l need to provide documents that show you can afford to repay the loan.

These may include:

• management accounts
• cash flow forecast
• business plan
• historic accounts
• details of assets

The documents required will vary from lender to lender and depend on how much you鈥檙e asking for. If you鈥檙e asking your existing lender for a small loan, the process may be automated and not require all of the documents.

The lender will check that the loan is:

• for a suitable business purpose
• affordable for you
• the right type of finance for your needs

The lender will decide whether to offer you a loan or another type of finance and you鈥檒l be responsible for repaying 100% of the amount borrowed.

If the lender turns you down

If one lender turns you down, you can .

You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the .